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CIT Picks Prepack Bankruptcy As Going Forward Option
Not sure if this is news, but hopefully the robots that are all over CIT will finally get this headline through their babelfish English-to-Machine Language translators and stop drawing retail in, who in turn believe there is some/any value (aside from pure Las Vegas entertainment value) left in this stock.
From Bloomberg:
CIT Group Inc., the 101-year-old
commercial lender, is planning to start a debt exchange offer
that will include a so-called pre-packaged bankruptcy option, a
person familiar with the matter said.
Let us put this in terms that even TheStreet will understand: the. stock. is. worth. exactly. 0.00.
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"the. stock. is. worth. exactly. 0.00."
But in the current paradigm, that is a bullish buying opportunity...
Fundamental value means nothing to SkyNet.
exactly
Oh absolutely, 0 equity value would be much better than the value behind most financial companies, which are quite negative, so definitely a BUY at 0!
That stock is worth less than the carpet I wipe my ass on.
Bad doggy.
LOL
Jim Cramer just downgraded CIT form good buy to good bye......
It is about time.
So in Goldmanese : "Conviction Buy"???
Yup. Only if they're selling it.
no guys you are all wrong. the new floor for stock prices is the one dollar ground for HFT so the stock is a BUY BUY BUY ...
no , not really ! ;-)
I'm sure Cramer still thinks this is a buying opportunity.
Here's a big BOO-YAH! calling from I-dont-know-Schittsvile.
Not sure why companies are so averse to pre-packaged BKs. What better way to recapitalize a company than to convert debt to equity if you have a liquidity problem?
I expect more companies will follow this trend in coming years, the option is available for a reason.
The reason is that it's the only option.
But you are correct... it does often make sense.
It's a bit of a nuisance -- or more precisely, outside of the comfort zone -- for the bankruptcy lawyers to have to solicit votes before the bankruptcy filing. Also brings SEC rules into play that bankruptcy lawyers aren't as accustomed to dealing with. I suspect that because of those factors, the lawyers are less likely to raise the option. A sophisticated GC might raise it on his own, but generally if the bankruptcy lawyers don't suggest it, it's not part of the strategy.
Hadn't thought about it that way. Makes sense though. Perhaps the lawyers could also be paid in shares?
Bill, please give my best to Steve Dallas and the rest of the Boingers.
Fractional Reserve Stocking? :-/
Printing presses? Fiat Stock? Is nothing real?
BUY BUY BUY BUY BUY BUY
Hedge Fund star PM (permabull) who speaks to Cramer regularly is telling me that his CIT options are gonna 10x. Either Cramer has valuable inside info into this matter or the financial "leadership" of this country is as off their rocker as we think they are.
OMG I hope it is not Lenny D...sounds like the advice he would give.
For Marla and wallstreetpro2:
http://www.youtube.com/watch?v=t0yspBiQT2Y&feature=fvw
Lehman is supposed to be worth..exactly..zero...too. But it aint.
"Let us put this in terms that even TheStreet will understand: the. stock. is. worth. exactly. 0.00."
Sadly, like Cramer (who has continued to don the veil of ignorance as he strolls down the aisle towards his husband-to-be, Mass Delusion), TheStreet will see this as a 'buying opportunity'.
Hey Tyler,
http://ftalphaville.ft.com/blog/2009/09/30/74846/why-day-traders-will-never-win-chicago-pmi-edition/
We distitinctly highlighted that PMI was disclosed 3 minutes ahead of the media release to those who wanted to pay for it.
for pure laughs go look at the firestorm on the google message boards posted by inept "day traders" shitting themselves. always good for a laugh. BUY BUY BUY!
Oh we know all the Grandma's in the Casino will still want to "play" CIT until it is delisted. BTW big fan of Hitchhiker I see....also, you know it always seems strange there is a runup into the close the day before the Jobs Number post...not so much today but Volume is picking up...Tyler or anyone how come???
C went below $1.00, rearranged the chairs on the deck of the Titanic, went to $3.00 in a few days.
I really do wonder if this is a lather, rinse, repeat.
The list of dead men walking is lengthy.
Stocks are worth whatever someone is willing to pay for them.
The only guy worth his salt writing for the Street is Doug Kass.
AIG is nothing but Las Vegas entertainment and also worth 0.00 too. Makes me puke when it is a $40 stock. Can hardly wait till this one lands on it's ass.
Rattigan shines a light on the continuing debtors revolt, and the absurdity of "giving the banks taxpayer money, so they can charge us to lend it back to us"
http://articles.moneycentral.msn.com/video/default-ap.aspx?cp-documentid...
OT
The day global warming aka climate change died. The comments are precious.
http://wattsupwiththat.com/2009/09/30/a-must-read-the-yamal-hockey-stick-implosion-in-laymans-terms/
[img]http://wattsupwiththat.files.wordpress.com/2009/09/mccoy_hockey_stick_its_dead_jim.jpg?w=350&h=312[/img]
Did you see my post where their 1.5 billion dollar carbon satellite crashed into the ocean.
http://www.wired.com/wiredscience/2009/02/launchfailure/
RIMM dropped 20% the day after Cramer pumped it.
CIT is down 47% the day after he pumped it.
Buyers were Cramerized by the Sham-wow guy of stocks.
$2.5 Billion of CIT preferred shares issued to taxpayers now worth zilch.
Cramerized!
Robo Update...
Under contributors section
http://www.zerohedge.com/article/hi-fi-trading-business-cycle
R.I.P. Saturn
Watch the ES futures and see if there is any fallout..
CIT, a relic of a bygone era, gross and obese, unable to crawl, stand or move. Still, the darling of day traders & Cramer alike. Even CIT has no clear heels value after PIMPCO pumped & dumped it in less than 4 months.
O- good all our worries are over Ken Lews is going to step down, now the SEC can really get something done.
and his parachute will be what??? $100 million?
Breaking NEWS, B of A CEO Ken Lewis is stepping down, that is easier than testimony in front of congress.
Will Ken Lewis be taking over Lee Majors role in an updated version of The Fall Guy this Fall Television Season?
Don't worry if your long CIT. The news is " Better Than Expected" and the investors will take this stock up better than $2.00. Honestly, just keep watching CNBC and Cramerica.
What is a real scandal is the lack of enforcement by the SEC on the naked shorts of all these dead men walking companies. Everyone should be forced to deliver the stock to the registrar and close the trades for tax purposes when entering bk court.
And the parachute opens for Ken Lewis. Just like I predicted. The no snitchin' rule. Take the SEC arrows, button up tight and cruise out with a big payday.
Gone by year end.
But....but.....what about jail ??
Not to worry. The cons respect those who stick to the rule. And arsefuk those who don't.
i dont watch the crackpot cramer. does anyone know what or anything he said today to all the people that followed his advice after hrs yesterday???
"...the. stock. is. worth. exactly. 0.00."
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